Spanish construction giant, Acciona has boosted its presence in Australia with an agreement to acquire construction engineering specialist, Geotech. The deal, which values Geotech at AU$262m (£163m), is designed to accelerate Acciona’s expansion in a market that it sees as having great potential for infrastructure development. Acciona said that Geotech brings a track record, backlog of work and know-how in mid-sized projects in Australia, a strongly established local footprint and technical capabilities that have made it a highly-valued subcontractor in large projects, particularly railway works. The deal includes a cash payment of US$197m. In addition, three key Geotech executives will receive a 17.6% stake in a new subsidiary, Acciona Geotech Holding. The new company will integrate Geotech and Acciona’s future pipeline of construction projects in Australia. Acciona Construction will control 82.4% of the new subsidiary. The deal seeks to build upon Acciona Construction and Geotech’s complementary businesses, and to create a platform for growth that can respond to the sizeable demand for infrastructure in the Australian market, estimated at AU$125bn over the next decade. The new company will be based in Melbourne.
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